Driven by increased long positions, the most-traded SHFE lead 2605 contract showed a unilateral upward trend today [Brief Review of Lead Futures]

SMM News, April 1:

During the day, the most-traded SHFE lead 2605 contract opened at 16,500 yuan/mt. Bulls gained momentum in early trading and pushed prices up rapidly. During the session, it fluctuated at highs in the 16,680-16,725 yuan/mt range, and pulled back slightly late in the session as bulls took profits, finally closing at 16,655 yuan/mt, up 155 yuan/mt, or 0.94%, and posting a small bullish candlestick. From a fundamental perspective, China’s lead ingot supply side is trending looser, and continued arrivals of imported refined lead to replenish supply have exerted some bearish pressure on lead prices. In addition, lead-acid battery consumption is about to enter the traditional off-season, and downstream demand expectations are weak, further limiting the upside in lead prices. In early April, as smelters gradually resume work and production, concentrated release of scrap battery procurement demand will provide relatively strong rigid support for lead prices. At the same time, however, production resumptions on the smelting side will also increase lead ingot supply, creating some bearish pressure on prices. Considering the bullish and bearish factors, lead prices are expected to continue to move sideways in the short term.

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